Uganda's central bank has started buying gold from domestic producers under a three-year pilot to diversify foreign reserves and strengthen traceability.
The Bank of Uganda confirmed it made its first gold purchase on 17 April 2026 under a domestic gold purchase programme first announced two years ago.
The pilot aims to build and diversify Uganda's foreign exchange reserves by purchasing and processing domestically mined gold, strengthening reserve adequacy and reducing risks associated with conventional reserve instruments.
BoU joins other African central banks, including Kenya and the Democratic Republic of Congo, that have moved to diversify reserves by buying gold as Uganda emerges as a major regional gold processor and trader.
Source: Reuters, via CNBC Africa.